Manufacturing

As a small manufacturer, your success depends upon your company’s ability to maintain a lean and flexible manufacturing operation that allows for quick turn around times on parts, and ease of transition to new demands. Your ability to quickly turn around small production runs is the one area of expertise several larger manufacturers simply can’t compete with. However, being a smaller manufacturer does have its pitfalls. You certainly don’t have the economies of scale when compared to your larger competition, and your company likely doesn’t have the same level of productivity either. For most small businesses it isn’t that they can’t be productive, it’s that they don’t know what goes into their measurement of productivity. Because they lack this understanding, they can’t make the proper adjustments and put processes in place to improve their manufacturing throughput.

What goes into an 8 hour work day?

A number of companies will look at what has been produced in a given day and not be able to reconcile that production volume with the 8 hours of paid work time. They can’t quite figure out how they produced so little within the 8 hours. The problem is that nobody, and no company, ever works a full 8 hours. There is lunch, which can be anywhere between a half hour to a full hour, and then 15 minute breaks both in the morning, and afternoon. Taking that into consideration, you’re now down to 6 & ½ hours. Do you think anyone is so productive that they work that full 6 & ½ hours? Obviously this simply isn’t possible. That would make them machines and nobody is 100% productive. So, what’s left? Well, that’s where it gets interesting. Depending upon who you are, where you work, what you do, and whom you work for, the productivity rate can be anywhere from 60% to 80%, or even higher. This is the rate at which you are able to work during those hours without any interruptions and down time. So, if an employee were only 60% productive, they would only be working 3 hours and 54 minutes out of the 6 & ½ hours of available work time. Taking this a step further, if the cycle time needed to make one of your products was 15 minutes, this would explain why your production of these units was only 15 when you might have expected 30 or more. This is certainly nowhere near the 8 hours of production time you initially based your estimates on. Is this the fault of the employee, or is there something else at play here? The fact is, there are a number of reasons for lost time in manufacturing, and a number of these factors can be corrected. So, what are these issues and what should you, as a business owner, look for?

1.  Inadequate work instructions, incomplete work orders, and poor assembly drawings:

A large portion of delays can be attributed to unclear, improper work instructions, or even the assembly drawings themselves. Employees need clear and concise instructions in order to perform a seamless work task. Without instructions that are easily understood, the production will never be able to reach its full potential. In a number of cases, production and assembly drawings lack the clarity and thoroughness for the operator to be able to perform the task without needing assistance.

2.  Lack of proper tools and equipment:

It’s amazing to think that this is often an issue, but it is. Companies sometimes think saving money means to cut back on what they term “non-essential” spending. However, what does “non-essential” mean for your business? Has someone decided that to not purchase or upgrade equipment is a savings? In doing this, have they taken the time to document what it means in terms of the delays and lost time in production? More often than not, companies make these decisions with good intentions, but the ramifications of such decisions are not often analyzed and scrutinized. The initial belief is that the savings is desperately needed, when in fact the decision itself costs the company more in the long run.

3.  Lack of material due to stock outs:

This is yet another consequence of trying to save money with negative results. Controlling inventory costs is important, but not at the expense of a seamless and uninterrupted work process. When production employees suddenly stop because they lack material, the lost time simply adds up. Without the material, and with deadlines to meet, the company will now expedite the delivery of the material at an added cost.

4.  Lack of training resulting in delays and poor quality:

Several companies take a laid back approach to training their production employees. Perhaps this is because they don’t understand the consequences, or simply don’t have the time to properly train production employees. However, not all employees will take the time to point out when they are unsure of work instructions. Suffice it to say, many will go ahead as is and do their best. The results are rather obvious. The products are often poorly made and need to be scrapped or repaired. This of course results in further costs to the company.

5.  Lack of proper “jigs” and work station set up:

The use of “jigs” in production allows assemblers to piece together the product with minimal defects. A “jig” is nothing more than an assembly block, or guideline, where the employee can assemble the product to specified dimensions with guaranteed results. There are several companies that can manufacture these “jigs” with plastic injection molding machines. Once removed from the mold, the “jig” is permanent and assembly of any future products is simplified.  Granted, it costs money to make these jigs, but the rewards mean a simpler and easier work process. The goal of any production work station is to lower the cycle times, eliminate defects, and ensure that the employee is able to operate without interruption. In order to do this, the employees need everything within reach and the necessary tools. Take the time to set up the ideal work station where the employee can use these “jigs” to improve the assembly cycle time.  

6.  Transit time between production work cells:

One of the biggest issues in production is transit time from one production cell to another. Take the time to document how long it takes for product to move from one location to anther on your production floor. It’s simply wasted time when employees have to walk a greater distance to move the assembly to the next chain in the process. Production cycles times include all aspects of making a finished product, and if someone spends a large amount of time walking back and forth, you can be sure it adds up.

Perhaps the single biggest way to improve all these issues is to take the time to analyze each of their effects in your production. Lost or idle time adds to your cycle times, decreases your production rate, and costs your company money. Taking the time to train your employees, and empowering them to come forward with suggestions, are the two most important steps that can be made to improving your productivity. In addition, taking the time to review these six areas listed will ultimately lower your cycle times and improve your manufacturing productivity rates.

What is a Five “S” Program and how can it help my company improve productivity, morale, and safety results? They are all interrelated. A Five “S” Program reduces waste and is one part of an effective safety program. It is not a stand alone program that is meant to encompass every aspect of safety in your company, but it focuses on housekeeping and productivity.  All of this success will ultimately be accomplished by getting involvement from employees and ultimately improving morale.

The letter “S” stands for five key components of the program. These components are: Sort, Simplify, Sweep, Standardize and Sustain. The program is especially useful in commercial or industrial applications such as shops, laboratories, and manufacturing facilities but can be utilized in almost every working environment, including an office. Here are the individual components explained:

Sort

This is the very first step. The targeted work area, including any designated storage areas, is critically examined in terms of housekeeping. This examination includes cleanliness, waste handling, equipment storage, parts storage, tool handling, parts bins, and cleaner/solvent/chemical storage. Any items that are not being used daily should be red tagged. Initially, the focus is within the primary work area, but should also include storage areas. Once these items are red tagged, they should be sorted into groups. Groups are established by the company based on needs, but suggested groups include used regularly but not daily, used rarely, and never used. Items that are never used can be sold or scrapped.

Next, a designated storage area must be set up for daily, short term and long term storage. The items tagged “regularly” go into short term storage, items tagged “rarely” go into long term storage and untagged daily use items go into daily storage. Attention should be paid to ensure the daily use items are not stored too far from the work area. Long term storage can be further away.

Before moving on to the next step, the work area and equipment should be given a basic clean up.

Simplify

Everything should have a place and be in its place. In this step, the work area and each storage area is further organized. Label drawers and shelves to identify the locations for specific items to be stored. For tools, the use of toolboxes with specifically labeled drawers is recommended for less frequently used tools, and for tools used regularly, consider the use of pegboard. The outline of the tool can be traced with permanent marker or tape.

The goal of this step is to think through work tasks and organize tools, equipment and supplies so that they are convenient, simple to get to, and are organized in such a way that makes sense. Less used tools and supplies take a little more work to get to. Frequently used items are nearby and ready to go.

Depending upon budget and depth of the program, this step may require reworking of entire assembly lines or moving major pieces of equipment to facilitate a more productive workspace for the employees.

Sweep

In this step it is time to perform a thorough cleaning and inspection of the facility, equipment and supplies. Identify routines or processes for inspections and cleaning, particularly if they are non-existent. Develop contingencies fo handling incoming and outgoing products or supplies. If procedures exist, audit them for effectiveness and correct any shortcomings. Formalize the processes by documenting and training employees. Finally in this step, identify zones within the workspace and designated storage areas. Assign employees to keep these zones in shape. The housekeeping portion of the program should be completed at each shifts' end, or at least once a day.

Standardize

This step of the Five “S” Program requires formal documentation and implementation of the program. At minimum the documentation should include the defined zones, with examples of the material, tools, or equipment used or stored in the zone, who is responsible for policing each zone, and the processes by which the zones are to be maintained, inspected and cleaned. Also important with the documentation phase is having an implementation plan which provides employees with clear cut goals and time lines to strive for.

Sustain

The final step of the program requires continual examination of the processes and program itself. The first four steps are continuously reviewed, audited and challenged to determine if better functionality can be achieved. Employees will likely appreciate the pride and efficiency of a streamlined work space, but they will still need guidance and direction to ensure things are kept organized, cleaned, maintained and inspected.

As you can see, the primary idea behind a Five “S” Program is housekeeping. However, good housekeeping will pay dividends beyond a nice looking work space. There will be no more awkward tools, boxes or supplies on the floor presenting trip hazards. There will be no question as to where dangerous chemicals are stored. Heavy items will not be perched precariously on top of shelves, presenting a possible hazard. In addition to safety improvements, productivity will show marked increase when employees no longer have to waste time looking for supplies or tools. They can go right to what they need.

In addition, as hinted at earlier, most employees will appreciate the improvements in their working conditions, including the safety improvements. They will show more pride in their work and will surprise you at their willingness to “clean the place up” and keep it looking that way!